Generally, when I speak to Traders, the main motivation for them to enter trading and try to forge it as a career is to make some quick and/or easy money.
The romantic view held within trading, which is perhaps further emphasized from the abundance of modern day ‘twitter traders’ with their photographs of piles of money taken in amazing places with expensive sports cars – is that trading is easy. You can just role out of bed in the morning, turn the laptop on, make a few grand and boom, easy as that you are done, you can sail off into the sunset…..
However, in reality, the scenario is very different.
It is likely that you will have many bad days, many significant draw downs, many consecutive losses. What is important for you to understand is that this is part of the business of trading!
What is important is two things:
- You manage your risk to ensure the drawdowns are not so big that it kicks you out of the game
- You keep working, you keep trying, you keep looking at how you can improve.
If you have a system that you know works for you, stick with it, ensure how you can be compliant with that system, control your risk and remember to play the long term game.
You will make mistakes, and chances are you will make mistakes fairly regularly – don’t be discouraged if you do. Keep doing what you need to do as per your system, and you will come out ahead.